RWE Dea Looks to Moving Forward at Breagh Discovery
RWA Dea UK has announced that it has successfully completed the installation of the Breagh Alpha platform in the North Sea.
The platform, which comprises a 2,000 tonnes jacket with eight piles weighing a total of another 2,000 tonnes, was installed by Dutch company Heerema Marine Contractors. The platform sits in 62 metres of water, and is lies in the North Sea, around 100 kilometres from Teesside in the United Kingdom.
Chief Operating Officer of RWE Dea AG, Ralf to Baben, welcomed the installation, saying it constituted a "milestone" for development of the Breagh field.
"The installation of the Breagh platform marks another significant milestone for the Breagh field development following on from the successful installation of the pipelines to shore earlier in the year," he said. This keeps the Breagh project on track for first gas in mid-2012."
The Breagh field, located in the southern North Sea on the Dogger Shelf, is one of the biggest offshore gas discoveries in the North Sea.
The project involves the construction of a new offshore platform and pipeline to bring gas ashore at Coatham Sands, Redcar.
Natural gas will be transported to landfall via a 20" pipeline running approximately 100 kilometres to the shore, where it will be linked to a new onshore pipeline running approximately 10 kilometres to the Teesside Gas Processing Plant located at Seal Sands, for processing prior to its entry into the National Transmission System.
RWE Dea's holds a 70 percent interest in the project as operator. Sterling Resources holds the remaining 30 percent.
Background to the Breagh Discovery
Sterling Resources acquired Block 42/13 in the UK Southern North Sea as operator in 2004. Its interest in the Block was reduced to 45 percent after a series of farm-out arrangements.
In late 2007 drilling of the 42/13-3 well, tested gas at rates of up to 17.6 million cubic feet per day (MMcf/d). In 2008, the Breagh 42/13-4 appraisal well was drilled on the eastern flank of the Breagh structure tested gas at rates of up to 10.2 MMcf/d, confirming the continuity of the reservoir encountered in the 42/13-3 well. In late 2008 Sterling commenced drilling the Breagh 42/13-5 and 5Z horizontal appraisal wells, which were completed and tested in early 2009. The 42/13-5Z well tested natural gas at rates of up to 26 MMcf/d.
After the success of the appraisal drilling program, challenges in raising financing to fund the estimated US $1 billion field development bill led to the purchase by RWE Dea UK SNS Limited, a subsidiary of RWE Dea AG, of 70% working interest in the Breagh Field and surrounding exploration blocks (Blocks 42/8, 42/9, 42/12, and 42/14) in mid 2009.
Sterling retained a reduced 30% interest, while EnCore Ltd., EnCore Petroleum Ltd., RegEnersys Ltd., Stratic Energy Corp., Faroe Petroleum (UK) Ltd. and Petro Ventures Ltd all disposed of their holdings.